The biggest challenge in my trading has been protecting the money that I have made in my product. I’m a fifth generation cattle rancher (we buy and sell cattle with the theory of buying what’s discounted and adding value to are product) my family has been blessed over the years and we have done well in the cattle business, but with doing well that means TRYING to protect what we have. I’m surrounded by uncertainty. Weather, volatile markets, animals, regulations and so on. I’ve read three of your books and I really can correlate with what your saying about quantitative decision making and let price dictate decisions. In the cattle business if it doesn’t add up mathematically then we don’t take the risk of pursuing that trade, so why do I look at risk protection differently? I always felt deep down there was a better way to manage risk. Trying to protect what we have made (with the cattle) to only pay huge margin calls and miss out on big trends. I’m not the greatest with computers and right now and that feels also like a huge challenge, but I’m confident that can be learned. I’m reading and absorbing like crazy through your podcast. Longhand I have been using moving averages to find volatility in the feeder and fat cattle markets, another big mental challenge right now is the computer side. I’m not a computer guy, but I love the idea of checking my computer before or after trading that day and having my system tell me what to do, not some talking head that is prolly being paid to say what he or she is saying. So to wrap up. My biggest challenges are protecting large sums of money with risk protection and using tech to make better quantified decisions.
[Name] Land & Cattle
I can help. A good start.